Update: Somehow I failed to realize that Aeroplan has offered to let members spend miles for taxes and surcharges since 2016. I probably realized it when this was new, and promptly forgot because it’s not been a deal I’d ever recommend. However the terms and conditions change to the program detailing this feature doesn’t mean it’s a new feature.
Since the feature isn’t new, that doesn’t tell us about current investment decisions that allow inferences about the new program that’s coming next year.
Air Canada spun off its frequent flyer program nearly 15 years ago. Aeroplan was run as a separate company. As the e15 year agreement between Air Canada and Aeroplan came to an end negotiations on extending broke down. Air Canada announced they wouldn’t renew. Shares of Aeroplan’s parent company Aimia plummeted. Air Canada said they were going to launch a new program.
A new program would allow Air Canada to capture that sweet, sweet co-brand credit card cash. It would also allow them to communicate directly with customers and tailor the program to meet their needs without having to negotiate with a third party and pay for each change.
While Aeroplan was working through a way forward without serving as the frequent flyer program for a major airline, Air Canada worked worked with its credit card partners to re-acquire the program.
We know that in 2020 Air Canada plans to re-launch their frequent flyer program. We don’t know a lot about the new program yet, other than that they will keep an award chart for long haul and partner travel and that domestic flight pricing will be dynamic (but capped – hopefully we won’t see the stupid pricing levels that sometimes come up with U.S. carriers).
However some changes trickle out in the meantime prior to the big reveal. The Aeroplan elite program, which was separate from Air Canada’s is unsurprisingly being sunset. And Air Canada just announced that starting March 1, 2020 members will be able to redeem additional miles to cover the cost of taxes and surcharges on awards (excluding Air Calin redemptions and infant tickets).
Copyright: ronniechua / 123RF Stock Photo
I don’t expect this to be a good use of miles. Usually redeeming miles in lieu of cash costs is done at a penny apiece in value or less. More importantly it’s likely a signal about the future program. Since they chose to build out this feature I have to assume they’re keeping it, which means the new loyalty program will still impose carrier surcharges on (some number of) awards.
I thought you already could redeem miles for taxes and surcharges when redeeming Aeroplan miles nowadays, no?
Correct, you can already do this. A very poor use of miles.
I still can’t over the fact that my air miles expired just because I’m just accumulating miles and not redeeming them. How about the saying “Saving it for a rainy day” I guess this doesn’t count.